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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0705*
HOUSE BILL 705
I3, C1, P1 6lr2990
By: Delegate Ivey
Introduced and read first time: February 2, 2026
Assigned to: Government, Labor, and Elections
A BILL ENTITLED
AN ACT concerning 1
State Government – Attorney General – Office of the Attorney General 2
Enforcement Recovery Fund – Establishment 3
FOR the purpose of establishing the Office of the Attorney General Enforcement Recovery 4
Fund as a special, nonlapsing fund; requiring certain money to be deposited into the 5
Fund; and generally relating to the Office of the Attorney General Enforcement 6
Recovery Fund. 7
BY adding to 8
Article – State Government 9
Section 6–112 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2025 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – State Government 15
6–112. 16
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18
(2) “FUND” MEANS THE OFFICE OF THE ATTORNEY GENERAL 19
ENFORCEMENT RECOVERY FUND. 20
(3) “QUALIFIED RECOVERY ” MEANS PENALTIES OBTAINED B Y THE 21
OFFICE THROUGH ENFORCEMENT ACTIONS UNDER: 22
2 HOUSE BILL 705
(I) TITLE 11 OF THE COMMERCIAL LAW ARTICLE; 1
(II) TITLE 13 OF THE COMMERCIAL LAW ARTICLE; OR 2
(III) TITLE 11, SUBTITLE 3 OF THE CORPORATIONS AND 3
ASSOCIATIONS ARTICLE. 4
(B) THERE IS AN OFFICE OF THE ATTORNEY GENERAL ENFORCEMENT 5
RECOVERY FUND IN THE OFFICE. 6
(C) THE OFFICE SHALL ADMINISTER THE FUND. 7
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 8
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 10
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 11
(E) THE FUND CONSISTS OF: 12
(1) SUBJECT TO SUBSECTION (H) OF THIS SECTION , MONEY 13
DEPOSITED FROM QUALIFIED RECOVERIES; AND 14
(2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 15
THE BENEFIT OF THE FUND. 16
(F) THE FUND MAY BE USED ONLY TO SUPPORT THE CONSU MER 17
PROTECTION, ANTITRUST, AND SECURITIES ENFOR CEMENT ACTIVITIES OF THE 18
OFFICE, INCLUDING: 19
(1) INVESTIGATION AND PROSECUTION OF VIOLATIONS; 20
(2) EXPERT WITNESS FEES AND CONSULTING SERVICES; 21
(3) TECHNOLOGY AND DATA ANALYTICS TOOLS; 22
(4) TRAINING AND PROFESS IONAL DEVELOPMENT FOR 23
ENFORCEMENT STAFF; 24
(5) PUBLIC EDUCATION AND OUTREACH REGARDING C ONSUMER 25
RIGHTS; AND 26
(6) ANY OTHER DIRECT ENFORCEMENT–RELATED EXPENSES. 27
HOUSE BILL 705 3
(G) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 1
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 2
(2) INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO THE 3
GENERAL FUND OF THE STATE. 4
(H) (1) THE ATTORNEY GENERAL MAY DEPOSIT I NTO THE FUND UP TO 5
25% OF EACH QUALIFIED RECOVERY NOT TO EXCEED $7,500,000 PER FISCAL YEAR 6
IN AGGREGATE DEPOSITS FROM ALL QUALIFIED RECOVERIES. 7
(2) DEPOSITS UNDER THIS S UBSECTION MAY BE MAD E ONLY FROM 8
QUALIFIED RECOVERIES THAT: 9
(I) ARE OBTAINED THROUGH JUDGMENTS, SETTLEMENTS, OR 10
CONSENT DECREES; 11
(II) EXCEED $100,000 IN TOTAL RECOVERY AMOUNTS; AND 12
(III) ARE NOT OTHERWISE SP ECIFICALLY DESIGNATE D BY 13
COURT ORDER , SETTLEMENT AGREEMENT , OR STATE LAW FOR ALTERNA TIVE 14
PURPOSES, INCLUDING RESTITUTION FOR VICTIMS. 15
(3) ANY AMOUNT DEPOSITED INTO THE FUND UNDER THIS SECTION: 16
(I) IS SUPPLEMENTAL TO AND IS NOT IN TENDED TO TAKE THE 17
PLACE OF FUNDING THAT WOULD OTHERWISE BE APPROPRIATED TO THE OFFICE IN 18
THE STATE BUDGET; AND 19
(II) MAY NOT REDUCE AMOUNTS AVAILABLE FOR RESTITUTION 20
TO VICTIMS OR OTHER REMEDIAL PURPOSES. 21
(4) MONEY IN THE FUND MAY NOT BE USED FOR RESTITUTION OR 22
OTHER PAYMENTS TO VICTIMS OR THIRD PARTIES. 23
(5) THE EXISTENCE OF THE FUND MAY NOT BE USED AS A BASIS TO 24
REDUCE APPROPRIATION S TO THE OFFICE BELOW THE LEVE L THAT WOULD 25
OTHERWISE BE PROVIDED. 26
(I) (1) AT THE END OF EACH FISCAL YEAR , IF THE BALANCE OF TH E 27
FUND EXCEEDS $7,500,000, THE COMPTROLLER SHALL TRA NSFER THE EXCESS 28
BALANCE TO THE GENERAL FUND OF THE STATE. 29
4 HOUSE BILL 705
(2) ANY TRANSFER REQUIRED BY THIS SUBSECTION S HALL BE 1
COMPLETED WITHIN 30 DAYS AFTER THE CLOSE OF THE FISCAL YEAR. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
1, 2026. 4